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by roenxi 75 days ago
For anyone interested, the dynamics are something like:

1) Commercial entities generally try to sell their products for a profit (positive price).

2) Negative prices make this quite hard.

3) To get back into positive profit, they're going to need to charge a higher price later on.

There are 3 ways the overall market can go if prices are negative - either prices go positive at some other time to make up for the losses the power providers are making, someone figures out a use for the free power and the price stops going negative or power providers go out of business. Typically what this seems to result in for renewable-heavy grids is occasional (even regular) negative wholesale prices and some impressively high retail prices. Free electricity turns out to be very expensive; it shows the grid isn't coping.